Modeling Adaptive Supply Chain Management
MAGAZINE №5 (100) October 2020
AUTHORS ANDRONOV S.A., YARTSEVA A.A.
CATEGORY Simulation modelling Supply chains reliability and sustainability The uncertainty and risks in supply chains Supply chain management
ABSTRACT
Supply chain enterprises operate under the influence of many uncertain factors, such as, for example, fluctuations in demand, instability of supply, competitors' activity, weather conditions, etc. These issues in real supply chains are the responsibility of managers or of a provider firm.
When modeling processes in supply chains, coordination and adaptation functions are taken over by the corresponding blocks of the chain model. This study is devoted to the topical problem of improving the efficiency of the chain, taking into account the factors noted, namely, the study of management models for adaptive supply chains.
Due to the stochastic nature of the supply chain environment, modeling typically uses a simulation approach. Studies have shown that models that do not include self-organization blocks are not able to provide the required quality of management in conditions of uncertainty. Therefore, for adaptation at the operational level, it is proposed to consider the agent model in combination with the most appropriate methods of the automatic control theory. The presence of the human factor in supply chain management implies the presence of inertia inherent in people, which determined the applied principles: "quick response" - inertia and predictive nature when smoothing demand fluctuations to control the level of production, a fuzzy logical conclusion as a "soft" regulation inherent in humans, as well as error control based on the PID controller.
The model implemented in the Anylogic program has shown the effectiveness of applying the considered control methods under conditions of uncertainty and stochasticity of the parameters of the external environment. So, for example, the application of the quick response principle ensures the stability of the chain at the given levels of the studied impacts. So, in particular, in the framework of combined management, the model showed the best result - no more than 10% of outstanding orders. The addition of a continuous inventory control module to the model made it possible to reduce the failure rate by an average of 50%. The greatest effect is achieved as a result of the use of integrated control which takes into account the simultaneous change in the parameters of the chain links.
The considered control algorithms can be tested on empirical data of a specific chain, applied in the development of digital twins of chains, used by the provider as a means of automating the real supply chain management.
Keywords: supply chains uncertainty simulation AnyLogic control theory fuzzy logic
Improving Supply Logistics Efficiency Based on Blockchain Technology
MAGAZINE №3 (98) June 2020
AUTHORS KOLOSOV A.M.
CATEGORY Information technologies in logistics and SCM Simulation modelling Sourcing
ABSTRACT
The economic feasibility of using Blockchain technology in procurement procedures still raises a number of questions for managers and employees of companies that plan to implement this technology to solve the problems of departments involved in procurement activities. A number of Russian and foreign works devoted to application of Blockchain technology in the given direction in any way do not touch a question of economic substantiation of using this technology, though point at perspective of its application. The work reviews existing information decisions on the basis of Blockchain technology in the field of logistics and supply chain management and calculation of economic efficiency of Blockchain technology use at carrying out purchasing procedures by means of simulating the modeling process of purchases in AnyLogic software environment.
Keywords: Blockchain smartcontract procurement sourcing information technology simulation simulation modelling simulation model AnyLogic
Simulation Modeling of Supply Chain Using System Dynamics
MAGAZINE №1 (96) February 2020
AUTHORS BAZHINA D.B., LUKINSKIY V.S., NIKOLAEVSKIY N.N.
CATEGORY Simulation modelling
ABSTRACT
The article covers issues of supply chain modeling being an important step in the decision-making process. Logistics and supply chain management consider movement and transition of material flow as well as financial, information and other flows associated with it. The characteristics of a flow must be measured considering the dynamics of the flow movement. This determines the importance of simulation modeling in decision-making support system as the approach involves the implementation of modeling system algorithm functioning in a virtual time environment.
The literature analysis, on the one hand, allowed to conclude that the traditional approach to functioning process characteristics determination involving consistent problem solving on the level of supply chain element, is limited or not reflecting the specifics of real processes where the parameters variability in time is possible. On the other hand, there is lack of specific recommendations on building models based on principles of system dynamics as a simulation modeling tool which allows to consider process characteristics variability. This determines the aim of the research a part of which presents supply chain simulation model illustrating the possibilities of the approach. The results of the work can be used both in practice for industrial enterprises and for future research.
Keywords: simulation modeling simulation simulation model system dynamics supply chain modeling modelling decision support system decision making
Simulation Modeling of a Multilevel Inventory Management System in Distribution Systems
MAGAZINE №5 (94) October 2019
AUTHORS VERKHOVSKAYA M.V., KONOTOPSKY V.Y., MENSHIKOVA E.V.
CATEGORY Simulation modelling Inventory management
ABSTRACT
The method of numerical simulation is used to study the effect of parameters of a simple discrete flow of inventory through a logistic three-level distribution system, as well as the parameters of the system itself, on the universal characteristics of its efficiency — relative levels of current stocks in the system and deficit indicators for end users. By flow parameters we mean the level of its power and its variation; under the system parameters - the type of applied inventory management (IM) model and the speed of reaction to the requirements for the supply of the next batch of inventory. The flow of consumer requirements arriving at the lower level of the system and causing inventory movement through the system corresponds to the Poisson law. Four basic ultrasound models IM are tested, and in each case the same model is used at all levels of the system. As a result, we obtained the corresponding number (total - 66, given in article - 22) of the experimental dependences and the regression equations adequate to them. Their brief interpretation is given from the point of economic aspects of distribution logistics. Conclusions are drawn regarding the nature of the use of the identified dependencies and the directions for further research on this issue. The study (its object and applied technologies) is not strictly tied to either a specific area of logistics (trade, industry, logistics services, etc.), or to the hierarchical level of the object of modeling (industry, distribution company, a single-plant enterprise, a production association, a large production unit, etc.).
Keywords: inventory management distribution systems multilevel distribution systems simulation simulation modelling integrated logistics material flow Stochastic efficiency assessment
Justification of Service Policy Parameters for Spare Parts Supply Using Agent-based Simulation
MAGAZINE №3 (92) June 2019
AUTHORS
GOBEDZHISHVILI K.A. - Lecturer, Department of Information Systems and Technologies in Logistics, National Research University Higher School of Economics (Moscow, Russia)
ZAKHODYAKIN G.V. - Senior Lecturer, Department of Information Systems and Technologies in Logistics, National Research University Higher School of Economics (Moscow, Russia)
CATEGORY Logistics service management Simulation modelling Inventory management
ABSTRACT
Russian mining industry experiences a rapid growth providing an attractive market for suppliers of mining equipment. However, it is a customer-dominated market. The customers set stringent requirements for the initial equipment supply, as well as for the after-sale service and spare parts supply. The manufacturers of mining equipment are thus facing the need to rigorously analyze their supply chain, to develop a reasonable customer service policy and to adjust the supply chain to meet the requirements of the service policy. To fulfill the after-sale maintenance requirements, the manufacturers must stock spare parts within the supply chain and to design inventory control policies. This paper presents an agent-based simulation approach for estimation of the supply chain key performance indicators and to explore the service – cost trade-off. The conceptual model and the description of its implementation in Anylogic 8.4 software are provided. A case-study of a global mining equipment manufacturer's branch operating in Russia is described. The model is used to estimate the inventory
control policy parameters required to meet the target customer service level, to compare make-to-order against make-to-stock supply strategies, as well as to explore the service level – cost trade-off.
Keywords:
Simulation of Dynamic Supply Chains
MAGAZINE №6(89) December 2018
AUTHOR LYCHKINA N.N.
CATEGORY Analytics and reviews Simulation modelling
ABSTRACT
This article explores the possibilities of modern simulation modeling in the tasks of design and supply chain modeling as systems with structural and dynamic complexity, the study of which should be carried out taking into account multiple risk factors and uncertainties, considering and evaluating the efficiency, dynamism, flexibility and adaptability of the SC based on a variety of indicators used in logistic practice. The use of simulation modeling requires the adaptation of modern managerial techniques and approaches used in logistic practice with the technique of simulation modeling . Useful management techniques based on the use of simulation techniques in the analysis and modeling of SCs are considered, as well as methods of constructing conceptual models of the SC and analysis of the SC using simulation modeling, iterative simulation and optimization procedures for integrated research and optimization of the SC.
A review of the capabilities of various simulation paradigms for analyzing SCs and a review of related scientific literature are also being conducted. It is shown in particular that process simulation modeling is effective for describing the network structure and logistic processes in the SC and is actively used in reengineering projects based on SCOR-recommendations. System-dynamic models of adaptive supply chains allow you to study the complex interaction of material, information and financial flows in the SC, to analyze the stability of the SC, to coordinate the business strategy and logistics strategy of the company. Agent-based simulation modeling makes it possible to describe the behavior, processes of cooperation, coordination and inter-organizational interaction of the participants of the SC and reconfigurable network structures of the SC.
Keywords:
The Goods Distribution in a Warehouse Network: Optimal Solutions for Many Criteria
MAGAZINE №1 (78) February 2017
AUTHORS
KULESHOVA E.S. - Planning Manager, Syngenta LTD (Moscow, Russia)
CATEGORY Optimization and economic-mathematical modeling Distribution logistics
ABSTRACT
The paper presents the research of features to determine the best solutions for the goods distribution in the warehouse network problem on many criteria. The authors have shown that the synthesis of the following methods or approaches can be applied effectively to a network for storage of optimization decisions. They are: 1) Simulation of random orders by Monte Carlo method at a regular interval of supply planning time. 2) Analytical hierarchy process to compare the importance of particular criteria, taking into account the decision maker's preferences. 3) Linear programming in order to minimize transportation and storage costs of the goods (in the format of apriori played out random shop’s orders scenarios to be analyzed in relation to the possible adoption of alternatives, and order execution strategies). The synthesis of these methods makes it possible to formalize a set of alternatives for the organization of deliveries from the central warehouse to the distribution warehouse and shops. The task of goods distribution in the warehouse network is formalized as the problem of multicriteria selection. The implementation of this approach to the solutions optimization for the goods distribution in the warehouse network is presented in this article. As partial criteria are considered: 1) the need to reduce the average daily stock levels, pallets (so the figure would be minimized); 2) the requirement to reduce the average daily cost of storage and cargo handling, USD (thus, the rate and should be minimized); 3) the need to reduce the average daily transport expenses, USD (and this figure will be reduced).
Approach to optimize the goods distribution in the warehouse network, presented in this article, has the following characteristics. Along with the optimization procedures in the article it is presented a special modification of indicators of partial criteria, which, in contrast to the traditional theory approaches of multicriteria optimization, allows to take into account the preferences of the decision maker more adequately. This is achieved by the developed synthesis procedures to be taken into account when optimizing the efficient approaches to providing indicators such as in the form of the theory of multicriteria optimization, and in the format of the method of analytic hierarchy. The paper reveals the procedure for determining the best solution on the basis of a) traditional and generalized selection criteria (multiplication, Hurwitz, maximin); b) the method of analytic hierarchy; c) modified selection criteria. The paper also gives recommendations how to adequately take into account the preferences of decision-makers on the importance of particular criteria and also analyzes the impact of changes in their structure on the ranking of alternatives for different selection criteria.
Keywords:
Logistic Modelling of Bryansk-Vostochnyi Railway Station Functioning
MAGAZINE №6 (77) December 2016
AUTHORS
SECHKEREV A.A. - Senior Lecturer, Operational performance management Chair, Russian Transport Academy opened, Moscow State University of Railway Engineering (MIIT) Emperor Nicholas II (Moscow, Russia)
CATEGORY Logistic infrastructure Simulation modelling
ABSTRACT
The forecasting works on cargo traffic appearance at railway stations is in hand for a long time. The possibility of station processes simulation modelling usage is considered. The main structural objects which are necessary for model creation and their technical parameters are determined. The structure for working in the software program “Anylogic” is developed. The program is configured for different situations forecasting with the possibility to choose the best result. For this purpose the input parameters are inserted into the system. They are train set approach, arrival time, schedule, wotk technology and operations sequence, loading and discharging plan, etc. The analysis of received results with subsequent decision making concerning the further process modelling for necessary results generation is carried out.
The model uses the station technological development effectively, defines the componentwise system load, determines bottlenecks. Moreover, it gives an opportunity to realize concerned processes speed regulation and operation period. It serves as the the element of the scenario forecasting system for the whole region operation. The model optimizes data collection process, regulate required resources (the amount of used railways, the nubner of required fleet of cars, etc.|) and calculates the railway station performance indicators. “Anylogic” software usage allows forecasting of work schedule for the nearest day (and more) with the opportunity to correct and influence the situation rapidly until the required result is achieved
Keywords:
Distribution of Products in Warehouse Network: Synthesis of Special Optimization Procedures
MAGAZINE №4 (75) August 2016
AUTHORS
KULESHOVA E.S. - Planning Manager, Syngenta LTD (Moscow, Russia)
CATEGORY Optimization and economic-mathematical modeling Inventory management
ABSTRACT
Research of new efficient optimization decisions related to the distribution tasks of goods in the warehouse network is particularly relevant today. The purpose of this article - to help practitioners working in this field in the development of new approaches and methods for finding the best solutions in relation to problems of this type that will use existing hidden reserves of improving the efficiency of such systems. In particular, we will focus on the possibility of taking into account in the optimization of goods distribution strategies of a number of important factors, such as: 1) the ability to select the period of time for supply planning by orders of stores; 2) the ability to simulate orders from stores with the defined probability distributions for random amounts of such orders; 3) the ability to adapt to the preferences of the selection decision maker; 4) the possibility of reducing transport costs for deliveries, using solutions such as transport problems played out for random order value. The article presents such procedures, which correspond with the task of determining the best solution for the distribution of the goods in the warehouse network problem on many criteria. These procedures involve the synthesis of these optimization processes during the selected period to plan the supply of solutions. 1) Simulation modelling with random orders to stores this next period at the Monte Carlo method. 2) The use of analytic hierarchy process to compare the importance of particular criteria for decision-makers. 3) Minimization the cost of transportation and storage of goods in the form of a linear programming problem (for simulated random orders in relation to the analyzed alternatives to the possible adoption of the strategy and execution of orders). This article shows that the implementation of a set of procedures mentioned would allow formalizing the task of selecting the solution as the problem of multi-criteria optimization. After that, choose the best solutions can be carried out on the basis of traditional theory, and taking into account the adaptation of such a choice to the decision maker's preferences. Such selection procedures will be presented in a separate article.
Keywords:
Methods for supply chain simulation
MAGAZINE №4 (75) August 2016
AUTHOR TOLUJEW J.I.
CATEGORY Simulation
ABSTRACT
Although simulation modeling has been used for supply chain analysis and design since the beginning of 1990s, there are such undecided questions as methodological and technological aspects of complicated supply chains simulation models development. Additory questions arise due to the application opportunities of such modern software solutions as Supply Chain Guru or anyLogistix and the appearance of fundamentally new technical tools and technologies in supply chains which focus on the implementation of Industry 4.0 concept.
In the first part of the article such approaches for supply chain modelling, which can be reputed as conventional approaches today, are considered. In the second part two quite new directions in the field of supply chains simulation modelling are analysed. The first direction is connected with the usage of modelling paradigm Discrete Rate, and the second one concerns the working with models in emulation mode perspectives. By implementing Discrete Rate approach it becomes possible to create models which are space saver and more transparent than discrete-event models. Moreover, they are processed faster due to the reduction of modeling events number by a huge ratio. Working with models in emulation mode gives an opportunity to develop and test real management algorithms of all types of transportable objects in such supply chain bundles as warehouses, transloading terminals and logistic centers.
Keywords:
